Prudential's New Capital Guarantee Funds(SM) Deliver Growth Potential and Principal Protection to Retirement Plan Participants.

NEWARK, N.J. -- Prudential Retirement has introduced an innovative new series of investment options for retirement plan sponsors and participants called Capital Guarantee Funds(SM), which provide participants with a guaranteed protection of principal, growth potential through the equity markets and a guarantee of receiving investment gains despite any subsequent drops in market values. Prudential Retirement is a business of Prudential Financial (NYSE: PRU).

"Every business day, each of the four Capital Guarantee Funds reports a 'Net Unit Value' (NUV), representing the current value of the investment. The funds also have what is known as a 'Guaranteed Maturity Unit Value' (GMUV), which is simply the highest daily NUV attained by each fund during its lifetime. If you are invested in any of the funds at the time of maturity, you are guaranteed to receive the highest value the fund ever achieved (the GMUV), regardless of the current market value or when you invested in the fund," said Scott Sleyster, executive vice president, Prudential Retirement.

"In other words, an investor in these funds who stays invested until the funds mature is guaranteed to receive a value equal to the highest value the fund ever achieved, even if the fund's daily NUV has fallen since reaching its highest point," Sleyster added.

The funds are available with four target maturity dates--2010, 2015, 2020 and 2025--with each structured as a pooled mix of equity and fixed-income investments, which work to help maximize potential growth and to minimize downside risk. The guarantees result from the unique design of the funds, which are backed by the full faith and creditworthiness of the issuing company, Prudential Retirement Insurance and Annuity Company (PRIAC), a Prudential Financial company.

"Given the challenges faced by today's retirement plan participants - challenges that may include inadequate retirement savings, an aversion to risk, and the gradual elimination of traditional defined benefit pension plans - we believe this is the right product at the right time to help American workers build a secure retirement," Sleyster said.

Benefits extend beyond principal protection and growth potential

According to Sleyster, the benefits of the Capital Guarantee Funds extend beyond principal protection, growth potential and investment-gain guarantees. The funds also offer:

--The confidence of having PRIAC* act as a fiduciary for the selection and monitoring of the Funds' sub-advisor, Trajectory Asset Management LLC;

--Professional portfolio management from Trajectory Asset Management LLC, which guides the funds using sophisticated and disciplined investment processes, including automatic asset allocation and rebalancing tools;

--The flexibility to buy or sell units at any time;

--The choice of multiple maturity dates and the ability to invest in more than one fund at the same time, mixing and matching maturity dates to help fulfill more complex investment strategies; and

--The security of knowing that the guarantees are ultimately backed by the full financial strength of PRIAC.*

"We believe the Capital Guarantee Funds provide a compelling foundation for retirement portfolios by offering a distinctive combination of principal protection and growth potential built right into a single investment vehicle," Sleyster said.

"Because of the protection associated with the funds' guaranteed highest-level GMUV, we also believe that these Funds, in concert with other investment options, can attract even the most risk-averse investors, helping set them on the proper course to grow their wealth, protect their savings and adequately prepare for the income demands of their retirement years," he added.

Sleyster also noted that Prudential Retirement has built an approach to help drive better outcomes for defined contribution plan participants called "Secure Retirement," a key tenet of which is professionally managed, automatic asset allocation. Capital Guarantee Funds are a part of this Secure Retirement approach, since these Funds can help defined contribution participants enjoy growth potential and manage investment risk.

"As plan sponsors replace traditional defined benefit plans with defined contribution plans, Americans must increasingly rely on their DC plans for retirement security. The design shift from defined benefit to defined contribution has transferred investment risk from the plan sponsor to plan participants, and our Capital Guarantee Funds allow DC participants, particularly pre-retirees who fear the risk of loss associated with owning equity securities, to participate in the potential benefits of owning equity securities without risking any loss of principal as they approach retirement," Sleyster said.

Trajectory Asset Management is a registered Investment Advisor with more than a half a billion dollars in Assets Under Management, that specializes in quantitative investment strategies. Trajectory applies its proprietary quantitative methodologies to the management of institutional investment portfolios.

Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 80 years of retirement experience, Prudential Retirement meets the needs of two million defined contribution participants and more than one million defined benefit participants and annuitants. Prudential Retirement has more than $139 billion in retirement account values as of March 31, 2006.

Prudential Financial companies, with approximately $547 billion in total assets under management as of March 31, 2006, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement-related services and administration, asset management, banking and trust services, real estate brokerage franchises, relocation services and, through a joint venture, retail securities brokerage services. For more information, visit www.prudential.com.

In making a decision to invest in a Capital Guarantee Fund, investors should consider their ability to maintain their investment until its target maturity date. Investors who redeem units prior to maturity, for any reason, will receive the Net Unit Value, which may be worth more or less than their original cost. The Guaranteed Maturity Unit Value will be paid on the maturity date.

* Separate accounts are insurance products issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT 06103. PRIAC is a Prudential Financial Company.

Indirectly through subsidiaries, Prudential Financial, Inc. owns 38% and Wachovia Corporation owns 62% of Wachovia Securities LLC.